Types of income tax
“Types of Income Tax” Types of Income Tax: A Complete Guide Income tax is one of the most important sources of revenue for any government. It helps fund public services like infrastructure, healthcare, education, and defense. For individuals and businesses, understanding the types of income tax is essential for financial planning and compliance with the law. In this blog, we’ll explore the main types of income tax and how they apply. 1. Personal Income Tax This is the most common type of tax paid by individuals on the income they earn. Applies to salaries, wages, pensions, interest, rent, and other sources of income. Usually charged at different slabs or rates depending on income level. Taxpayers may also claim deductions under sections like 80C, 80D, etc. 👉 Example: A salaried employee paying tax on their annual salary after claiming deductions. 2. Corporate Income Tax This tax is levied on the profits earned by companies or firms. Different rates apply to domestic and foreign compan...